Collecting on Accounts Receivable
Running a medical practice is often times easier said than done. There are many times of the year that cause medical practices grief. One that stands out more than others is the Holiday season. The most wonderful time of the year for everyone but your bottom line. With the holiday season in full swing reimbursements now more than ever will be even slower to pay on their accounts.
The Importance of Accounts Receivable
The bulk of your income is coming from your services. The money used to pay the bills is often times the money that is given to you from clients paying for their monthly bill. During the holiday season, most people are less concerned with paying their bills and more concerned about having a memorable, fulfilling holiday. While this is somewhat understandable, this leaves your accounts receivable lacking the very funds we need to keep the businesses afloat.
Options to Cover Accounts Receivable
Depending on the complexity of the issue there is usually more than one way to solve a problem. It is not uncommon for repayments to be delayed around the holidays. Here are a few alternative options to help urge patients to pay on outstanding balances during the holiday seasons.
1. Offer Incentives
With a little creativity you can easily get your clients (or at least more of them) to pay their bills on time. These incentives do not have to be cash rewards. They can come in the form of contests or coupons. For example, you could have a contest drawing for a free game console or $500. Every month you pay increases the chances of you winning. If you work in dentistry you can offer teeth cleaning at a discount or even free to people who pay 100% of their medical bills four months in a row. Incentives do not have to break the bank; instead, they can act as a reminder that there is something in it for the customer.
2. Debt Collection
Debt collection can be a hassle for both patient and medical practice and it doesn’t come without a cost. When handling delinquent accounts you should always weigh your options. An obvious option for covering the cost before considering debt collection is covering your accounts receivable through alternative lending options. This allows for you to reach your bottom line while giving customers a little extra time to pay their bills. Considering something such as collections can lead to judgements which is a headache and just another bill to pay.
Using incentives is a great way to get customers to pay on time. Use the holiday seasons to hold a giveaway for something interesting or offer discounts on regular services such as teeth cleanings or regular check-ups as a means to incite customers to pay their bills on time.